Elkem Asa · OSL:ELK
Elkem Asa — Nordea Equity Small Cap Days 2020
18 slides from Elkem Asa's conference presentation, Aug 14, 2020
Slide 1: Nordea Equity Small Cap Days
Nordea Equity Small Cap Days 14 August 2020
Slide 2: Elkem: a global company with more than 110 years of history in advanced materials
Elkem: a global company with more than 110 years of history in advanced materials Elkem has a strong global platform combining the historic and cultural traditions of three unique business platforms Elkem started as a Norwegian company founded in 1904 by Sam Eyde, representing strong industrial tr
Slide 3: Three strong business areas
Three strong business areas Silicones Silicon Products Carbon Solutions BNOK 11.3* BNOK 9.3* BNOK 1.7* 51% of 42% of 7% of group sales group sales group sales End-markets End-markets End-markets Paper & Film Release Silicones Ferroalloys Automotive Automotive Silicon Silicone Rubber
Slide 4: Our products are vital for modern societies
Our products are vital for modern societies Low cost sustainable input factors High temperature/chemical production processes Examples of high value applications and markets Quartz Silicones Windmills Infrastructure Airbags Coal Silicon, foundry products Solar and microsilica Biocarbon Automotive Co
Slide 5: Environment, Social and Governance: A key priority
Environment, Social and Governance A key priority Safety Environment Ambition zero injuries Fossil CO2 emissions in Norway reduced by 18% by use of biocarbon Ambition 40% biocarbon by 2030 NOx emissions down 13% since 2015 Ambition 10% reduction in 2020 83 % share of renewables of 2019 total electri
Slide 6: Biocarbon strategy for environmental sustainability
Biocarbon strategy for environmental sustainability The production of silicon and ferrosilicon require use of carbon materials Carbon is used as a reducing agent in the smelting process to remove oxygen from the quartz, resulting in CO2 emissions The strategy is to reduce the use of fossil coa
Slide 7: Strategy and competitive strengths
Strategy and competitive strengths Building blocks for continued profitable growth Low cost positions based on integrated value chain Further product specialisation through R&D and acquisitions Organic growth and acquisitions 7 Nordea Equity Small Cap Days - 14 August 2020
Slide 8: Focus on cost: Productivity Improvement Programme ahead of plan
Focus on cost Productivity Improvement Programme ahead of plan The Productivity Improvement Programme was launched in 2020 with an identified potential of more than MNOK 350 in annual improvements Permanent savings related to personnel costs The programme will be finalised by the end of 2021
Slide 9: Specialisation and growth: Polysil acquisition a key strategic move
Specialisation and growth Polysil acquisition a key strategic move • Located in Zhongshan in Guangdong, China • Research and development centre with more than Polysil’s main product areas 50 engineers Electrical applications i.e. wire and cable accessories, insulation and connectors • Leading te
Slide 10: Silicones market update: low visibility, but China is picking up
Silicones market update low visibility, but China is picking up The global silicones market is negatively impacted by the Covid-19 situation Automotive and construction are generally weak Consumer products are generally holding up well DMC prices in China were at low levels, but recovered to
Slide 11: Silicon and ferrosilicon market update - weak development
Silicon and ferrosilicon CRU silicon 99 price EU (EUR/mt) market update - weak development CRU EU reference prices for silicon were holding up for most of 2Q-2020 However, reference prices were lagging the underlying market development The delayed impact was reflected in a clear downturn in re
Slide 12: Second quarter group results stable in weak markets
Second quarter group results stable in weak markets Good operational performance and sales secure stable results in challenging markets One-off of NOK 61 million from arbitration settlement included in 2Q-2020 Financial items and other items negatively impacted by currency changes Equity and
Slide 13: Elkem group strong balance sheet
Elkem group Earnings per share (EPS) strong balance sheet NOK per share Earnings per share (EPS) EPS amounted to NOK -0.02 in the second quarter Negatively impacted by losses in other items and foreign exchange losses in financial items Total equity amounted to BNOK 12,8 as at 30 June, sligh
Slide 14: Elkem group solid debt profile
Elkem group Net interest-bearing debt (NIBD) solid debt profile NOK billion Net interest bearing debt (NIBD) amounted to BNOK 8.1 as at 30 June 2020 Leverage ratio of 3.4 based on LTM EBITDA of BNOK 2.4 Increase in leverage ratio compared to previous quarter explained by dividend payment and c
Slide 15: Elkem group cash flow impacted by working capital
Elkem group Cash flow from operations cash flow impacted NOK million by working capital Cash flow from operations(1) was MNOK 363 in the second quarter, down from the corresponding quarter last year 2Q-2019 contained a significant reduction of working capital Investments ex. M&A amounted to MN
Slide 16: Outlook for the third quarter
Outlook for the third quarter Markets characterised by low visibility due to Covid-19 effects Elkem’s competitive position is strong, based on good cost positions, diversified product and geographic positions and robust financial structure Silicones demand in China is good, driven by governmen
Slide 17: Important notice
Important notice Any statement, estimate or projection included in this presentation (or upon which any of the conclusions contained herein are based) with respect to anticipated future performance (including, without limitation, any statement, estimate or projection with respect to the condition (f
Slide 18: Elkem
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